BDO Unibank Inc. led by bankero Nestor Tan and Union Bank of the Philippines headed by bankero Edwin Bautista are facing sanctions from the Bangko Sentral ng Pilipinas (BSP) for the Mark Nagoyo hacking incident last December.
In a statement, the BSP said it has completed its investigation into the incident that originated from a compromised web service last December.
Based on the results of the investigation, the Monetary Board approved the imposition of sanctions on BDO and UnionBank to ensure that both banks would swiftly address the issues the regulator noted
“This incident is a reminder that we should continue to enhance our defenses against cyberthreat actors to protect the integrity of the financial system and the interests of depositors,” BSP Governor Benjamin Diokno said.
The investigation conducted by the central bank recognized the corrective actions undertaken by both banks related to the cyber incident, including reimbursement by BDO of its affected clients.
The sanctions imposed emphasize the importance of continuously enhancing risk management systems involving cyber security, anti-money laundering, and combating terrorism and proliferation financing.
The sanctions also reinforce the need for banks to take a proactive stance in ensuring that their depositors are adequately protected.